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Around the world, there have been economic crisis left and right for the past months. It is even more heightened because of financial meltdown in the United States, which has affected a big chunk of the world’s economy. One of the biggest punch in the economy happened in the months of August and September. The prices of oil suddenly went up and have constantly escalated, which also caused the hike of prices of many goods. It is many of the industries are dependent on petroleum.

There have been measures to use alternative source of oil like ethanol and biodiesel but the production are still not enough for mass consumption. Large banking firms also declared bankruptcy that lead financial recession to various established banks around the world. There have also been increased unemployment due to inability of the companies to cope with rising prices in the market while decreasing demands of products. According to Norman Glickman, economist and university professor, the recession already begun early this year but economic giants do not want to accept the fact.


The effect is primarily seen in jobs, employment and wages; wages have been stagnant while there were mass lay offs of employees in many industrial factories all over the world. Moreover, he argued that the biggest policy mistake “was believing that free markets could solve all their problems. ” Because of the US economic capacity, once it is confronted with crisis, most of the world is affected. It is because the US dollar is serving as the financial index. Many industries around the world are also dependent in the US consumption.

Moreover, because of globalization, as Glickman termed it as “free market” the effect of the US economic crisis is all affecting the rest of the world. Though US may not greatly be affected and can mobilize to cope with the crisis in lesser duration, I am concern with the countries with third world economies in Asia and Africa. The immigrants from these countries are the primary target of jobs recession. In the past months, many overseas migrant workers around the world have been sent to their home countries or were forcedly laid off because of the incapacity of the companies in paying them.

Companies had to manage survival in the higher prices of producing goods. On the other hand, in the case of oil production and use, there have been speculations that the constant hiking of prices were just experimental to test until what price people will tolerate before they have to resort to alternatives. But as I have stated in the beginning, though there were alternatives that have been developed, they are not still enough for the consumption even one fourth of the world.

The best way for the world to cope with the depleting resources of oil is for people to learn to conserve energy resources; and to do that, people should know how to use alternatives. In most Asian countries, one substitute for petroleum used in cars is liquefied petroleum gas or LPG. Many may not believe its effectiveness and worry about the risk, but there have already been a lot of success stories and have proven to have at least lessened the cost of living with vehicles. Other measures could still be employed, people just need to explore and be formally informed.

In many stories about coping with financial crisis, one of the most convenient ways is to be informed about the economic situation of the country or certain localities. Economic crisis may not seem to immediately affect the individual but will soon and individuals who are not informed has the biggest probability to panic and do not know what to do. Early this month, US citizens made a mark in their history in electing their first African-American president. Upon assumption of office President-elect Barack Obama will be facing the management in bringing back the economic glory that was in the US.

Aware of the continuous crisis his country and world is struggling with, Obama take stage. He said that economic recovery will be his urgent priority: extend unemployment insurance benefits for workers who temporarily lost their jobs, give aids to states to create new jobs and move forward with the tax-cut plans for middle class family. With his priority, it is now a challenge for the US to support the change that they have wanted through the election. The readiness of the people to support the campaign and efforts for economic recovery is at stake.

As Obama puts it, it may not be quick but if people and industries will be cooperative, it will be easier to move on.

Works Cited

Pender, Kathleen. Coping with Financial Crisis: Five Stories. San Francisco Chronicle. September 25, 2008. Zeleny, Jeff. Obama takes center stage on economic crisis. Star Tribune. com. Retrieved November 8, 2008 from http://www. startribune. com/politics/national/president/34079994. html? elr=KArks:DCiU1OiP:DiiUiD3aPc:_Yyc:aUU Glickman, Norman. Economic Crisis 2008: Three faculty perspective. Focus: Rutgers. September 24, 2008

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